Question 1.

For the following, construct a cellular layout using the Binary Algorithm and
draw a possible layout diagram A: 3 – 5 – 7 – 10 – 12 B: 1 – 4 – 6 C: 3 – 5 – 7 D: 2 – 8 – 9 –
11 E: 3 – 5 – 7 – 10 – 12 F: 2 – 8 – 9 – 11 G: 1 – 4 – 6 H: 9 – 11

Ans.

Product Workstations
1 2 3 4 5 6 7 8 9 10 11 12

A X X X X X
B X X X
C X X X
D X X X X
E X X X X X
F X X X X
G X X X
H X X

Product Workstations VALUE

1 2 3 4 5 6 7 8 9 10 11 12

2048 1024 512 256 128 64 32 16 8 4 2 1

A 128 X X X X X 677
B 64 X X X 2368
C 32 X X X 672
D 16 X X X X 1050
E 8 X X X X X 677
F 4 X X X X 1050
G 2 X X X 2368
H 1 X X 10
VALUE 66 20 168 66 168 66 168 20 21 136 21 136
  Arranging product and workstation in descending order.

Product Value Workstation Value

B 2368
G 2368
D 1050
F 1050
A 677
E 677
C 672
H 10
3 168
5 168
7 168
10 136
12 136
1 66
4 66
6 66
9 21
11 21
2 20
8 20

Product Workstations
3 5 7 10 12 1 4 6 9 11 2 8

B X X X
G X X X
D X X X X
F X X X X
A X X X X X
E X X X X X
C X X X
H X X

Product Workstations
3 5 7 10 12 1 4 6 2 8 9 11

B X X X
G X X X
D X X X X
F X X X X
A X X X X X
E X X X X X
C X X X
H X X

Cell 1: - 3,5,7,10,12.
Cell 2: - 1,4,6.
Cell 3: - 2,8,9,11.

Question 2. Here is some data collected by an organization for relocating their operations.
Which would be the selected site according to the location rating factor method? Show your
calculations.
Ans. Multiplying the weights with respective sites.
Site 1:

 Political stability = 0.33 x 35 = 11.55

 Economic growth = 0.17 x 95 = 16.15
 Port facilities = 0.15 x 65 = 9.75
 Container support = 0.12 x 70 = 8.4
 Transportation= 0.10 x 85 = 8.5
 Duties = 0.08 x 95 = 7.6
 Area roads = 0.05 x 65 = 3.25
Total score for site 1 = 11.5 + 16.15 + 9.75 + 8.4 + 8.5 + 7.6 + 3.25 = 65.2

Site 2:
 Political stability = 0.33 x 55 = 18.15
 Economic growth = 0.17 x 85 =14.45
 Port facilities = 0.15 x 70 = 10.5
 Container support = 0.12 x 95 = 11.4
 Transportation= 0.10 x 35 = 3.5
 Duties = 0.08 x 75 = 6
 Area roads = 0.05 x 95 = 4.75
Total score for site 2 = 18.15 + 14.45 + 10.5 + 11.4 + 3.5 + 6 + 4.75 = 68.75

Site 3:
 Political stability = 0.33 * 95 = 31.35
 Economic growth = 0.17 * 70 = 11.9
 Port facilities = 0.15 * 80 = 12
 Container support = 0.12 * 85 = 10.2
 Transportation= 0.10 * 65 = 6.5
 Duties = 0.08 * 55 = 4.4
 Area roads = 0.05 * 45 = 2.25
Total score for site 3 = 31.35 + 11.9 + 12 + 10.2 + 6.5 + 4.4 + 2.25 = 78.6
Site 4:
  Political stability = 0.33 * 65 = 21.45
 Economic growth = 0.17 * 75 = 12.75
 Port facilities = 0.15 * 95 = 14.25
 Container support = 0.12 * 95 = 11.4
 Transportation= 0.10 * 75 = 7.5
 Duties = 0.08 * 65 = 5.2
 Area roads = 0.05 * 55 = 2.75
Total score for site 4 = 21.45 + 12.75 + 14.25 +11.4 + 7.5 + 5.2 + 2.75 = 75.3

Total score for site 3 is highest therefore, selected site is “Site 3”.

Question 3. Enlist the differences between Product and Process Based Layouts. State at
least 5 points. Use diagrams if necessary.
Ans.

Basis of comparison. Product layout. Process layout

Meaning The resources needed to produce the The resources having homogeneous
product are arranged in one line, as process or function are combined
per the sequence of operations. together.
Product Standardized Customized.
Workflow Identical flow and sequence of Variable flow, relying on the nature of
operations for each unit. job.
Inspection Minimum inspection is there, during Inspection is conducted multiple times
the sequence of operations. during the sequence of operations.
Results in Transfer lines. Group technology.
Production time. Less Comparatively high.
Production cost. High fixed cost and low variable Comparatively low fixed and high
cost. variable cost.
Effect of breakdown. Due to the interrelated system, Machinery breakdown does not have a
machinery breakdown can seriously significant effect on the final output.
affect production.
Stable for Mass production with less job Moderate production with more variety.
variety
Frequency of work Intermittent work. Continuous work
Time of travel. Less Comparatively more
 Lathe Section Milling Section Drilling section
M M M D D D
L L D

D
M M M Painting Depot
L L
Grinding & Finishing Section P

P
L L G G G G
Assembly

L L Receiving and Shipping Section A A A A A

Product layout

INPUT 1 M1 D1 P1 Final Product1

INPUT 2 M2 D2 P2 Final Product2

INPUT 3 M3 D3 P3 Final Product3

Process Layout

Question 4. You have been given the job to set up a store in an area which has to balance the
populations of various villages with their distances as plotted on an X-Y plane from the current
area of Operations. Draw a Graph and state your conclusions.

Village X Y Population(W)

Bhainsapur 200 350 3000

Bakripur 150 400 2000

Ghodapur 400 500 2500

Bandarpur 250 400 4000

Girgitpur 350 100 2200

Ans. Using Centre of gravity, we find (X, Y) for the Centre from the villages
X = {(x1 * w1) + (x2 * w2) + (x3 * w3) + (x4 * w4) + (x5 * w5)} / (w1 + w2 + w3 + w4 + w5)
X= {(200*3000) + (150*2000) + (400*2500) + (250*4000) + (350*2200)} / (3000 + 2000
+ 2500 + 4000 + 2200)
X= 3670000 / 13,700
X= 267.88
Y= {(y1 * w1) + (y2 * w2) + (y3 * w3) + (y4 * w4) + (y5 * w5)} / (w1 + w2 + w3 + w4 + w5)
Y = {(350*3000) + (400*2000) + (500*2500) + (400*4000) + (100*2200)} / (3000 + 2000
+ 2500 + 4000 + 2200)
Y= 4920000 / 13700
Y = 359.12
 Question 5. A group of new candidates has joined your organization. During a meeting one of
them asks this question: Isn’t Operations only about Manufacturing? Why don’t we rename
the department?
If you were a Senior Manager in this organization and you overheard this, how would
you explain what Operations Management is, and also explain the difference between
Production and Operations?
Ans.